Hewlett-Packard now receiving lawsuits over Autonomy troubles

Hewlett-Packard now receiving lawsuits over Autonomy troubles

Summary: Hewlett-Packard's Autonomy problem has taken another turn for the worst as lawsuits from investors are starting to trickle in.

SHARE:
4

In what could be the beginning of many, Hewlett-Packard is now reportedly being sued by an investor over the brewing Autonomy kerfuffle.

Reuters reported on Monday afternoon that an investor is suing HP and claiming that the company knew its statements about its Autonomy acquisition were misleading, which led the stock to fall.

The proposed class action lawsuit, Nicolow v. Hewlett-Packard, was filed at the U.S. District Court, Northern District of California in San Francisco.

For reference, there is a lot of unrest surrounding HP after it was revealed that the tech giant lost $8.8 billion over its purchase of Autonomy under the leadership of former CEO Léo Apotheker. It doesn't help that is also in combination with allegations of serious fraud on the part of Autonomy during the acquisition process, which is what this whole lawsuit will be about.

HP originally purchased Autonomy in August 2011 for approximately $10 billion -- a figure at the time that was reportedly equivalent to 11x revenue, stunning many observers.

Now it is clearer why so many people were shocked, but it wouldn't be as surprising if we see this class action suit from shareholders bloom even larger.

For more coverage of the latest HP-Autonomy news on ZDNet:

Topics: Hewlett-Packard, Legal

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

4 comments
Log in or register to join the discussion
  • No matter how you look at it ...

    It is HP's incompetency who cause the problem. They didn't do the "homework" they were supposed to do. They just did the bare minimum then call it a day.
    wackoae
  • Suing one's fellow shareholders

    AKA suing the victims. While the law probably doesn't provide for it, the real target of such lawsuits should be the CEO and those directors that approved the purchase.
    John L. Ries
  • Mr. Hewlett and Packard could not Rest in Peace

    Netflix and HP's management and its cronies are the best business study cases for any young MBA students and future leaders.
    Netteligent
  • Negligence and gross mismanagement based on incompetency

    The lawsuit should be grounds based on gross negligence and potentially criminal investigation of its board members
    flyguy29